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Kinder Morgan halts work on NED pipeline project

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World Pipelines,

Kinder Morgan has announced that, along with its subsidiary Tennessee Gas Pipeline Company (TGP), it has "suspended further work and expenditures on the Northeast Energy Direct (NED) project."

The proposed US$3.3 billion project would have brought a 30 in., 350 mile long high pressure pipeline that would have run from Wright, NY to Dracut, MA.

The pipeline was designed to deliver 2 billion ft3 of natural gas to New England.

Kinder Morgan said that they company's board approved the project in July 2015 based on existing contractual agreements at that time with local gas distribution companies that would purchase gas from the project, as well as expected commitments from additional companies.

"Unfortunately, despite working for more than two years and expending substantial shareholder resources, TGP did not receive the additional commitments it expected. As a result, there are currently neither sufficient volumes, nor a reasonable expectation of securing them, to proceed with the project as it is currently configured," the company explained.

Kinder Morgan added that Tennessee Gas Pipeline has operated in New England for several decades and will work to meet the need for additional natural gas infrastructure in the region.

"Although we have suspended work and further expenditures on the NED project, TGP will continue to work with customers to explore alternative solutions to address their needs, particularly local distribution companies that are unable to fully serve consumers and businesses in their areas because of the lack of access to abundant, low-cost domestic natural gas," the company noted.

The pipeline was meant to ease New England's high natural gas and electricity costs and create jobs.

The decision follows months of public hearings and group meetings where environmental activists and area residents expressed concerns about the project.

Edited from various sources by Elizabeth Corner

Sources: Western Mass NewsWCVBTimes Union

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